TSE:6753

Stock Analysis Report

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Market Cap

JP¥1.1t

Last Updated

2021/07/28 08:21 UTC

Data Sources

Company Financials +

Executive Summary

Sharp Corporation manufactures and sales telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, China, and internationally. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Sharp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6753 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6753's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

6753

1.2%

JP Consumer Durables

1.6%

JP Market


1 Year Return

58.4%

6753

32.5%

JP Consumer Durables

23.4%

JP Market

Return vs Industry: 6753 exceeded the JP Consumer Durables industry which returned 32.1% over the past year.

Return vs Market: 6753 exceeded the JP Market which returned 24% over the past year.


Shareholder returns

6753IndustryMarket
7 Day0.2%1.2%1.6%
30 Day-5.0%0.2%-1.5%
90 Day-7.0%-3.6%1.4%
1 Year60.9%58.4%34.5%32.5%26.0%23.4%
3 Year-34.9%-37.9%36.5%29.0%17.5%9.4%
5 Year100.9%91.0%124.0%104.2%68.8%50.3%

Long-Term Price Volatility Vs. Market

How volatile is Sharp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sharp undervalued compared to its fair value and its price relative to the market?

10.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6753 (¥1719) is trading below our estimate of fair value (¥1927.02)

Significantly Below Fair Value: 6753 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6753 is poor value based on its PE Ratio (19.7x) compared to the JP Consumer Durables industry average (10.8x).

PE vs Market: 6753 is poor value based on its PE Ratio (19.7x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6753 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 6753 is overvalued based on its PB Ratio (3x) compared to the JP Consumer Durables industry average (0.9x).


Future Growth

How is Sharp forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6753's forecast earnings growth (7.4% per year) is above the savings rate (0%).

Earnings vs Market: 6753's earnings (7.4% per year) are forecast to grow slower than the JP market (12.3% per year).

High Growth Earnings: 6753's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6753's revenue (1.5% per year) is forecast to grow slower than the JP market (5.3% per year).

High Growth Revenue: 6753's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6753's Return on Equity is forecast to be low in 3 years time (13.5%).


Past Performance

How has Sharp performed over the past 5 years?

59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6753 has high quality earnings.

Growing Profit Margin: 6753's current net profit margins (2.2%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: 6753 has become profitable over the past 5 years, growing earnings by 59.4% per year.

Accelerating Growth: 6753's earnings growth over the past year (288%) exceeds its 5-year average (59.4% per year).

Earnings vs Industry: 6753 earnings growth over the past year (288%) exceeded the Consumer Durables industry 31.5%.


Return on Equity

High ROE: 6753's Return on Equity (14.3%) is considered low.


Financial Health

How is Sharp's financial position?


Financial Position Analysis

Short Term Liabilities: 6753's short term assets (¥1,188.8B) exceed its short term liabilities (¥885.6B).

Long Term Liabilities: 6753's short term assets (¥1,188.8B) exceed its long term liabilities (¥677.5B).


Debt to Equity History and Analysis

Debt Level: 6753's debt to equity ratio (199.1%) is considered high.

Reducing Debt: 6753 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 6753's debt is well covered by operating cash flow (28.2%).

Interest Coverage: 6753's interest payments on its debt are well covered by EBIT (57.2x coverage).


Balance Sheet


Dividend

What is Sharp current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6753's dividend (1.75%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6753's dividend (1.75%) is low compared to the top 25% of dividend payers in the JP market (2.99%).


Stability and Growth of Payments

Stable Dividend: 6753's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6753's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), 6753's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Jeng-Wu Tai (68 yo)

4.92yrs

Tenure

Mr. Jeng-Wu Tai has been the Chief Executive Officer of Sharp Corporation since August 16, 2016 and its Chairman since June 2018. He served as President of Sharp Corporation since August 16, 2016 until Jun...


Leadership Team

Experienced Management: 6753's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: 6753's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sharp Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sharp Corporation
  • Ticker: 6753
  • Exchange: TSE
  • Founded: 1912
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: JP¥1.064t
  • Shares outstanding: 610.80m
  • Website: https://global.sharp

Number of Employees


Location

  • Sharp Corporation
  • 1 Takumi-cho
  • Sakai-ku
  • Sakai
  • Osaka
  • 590-8522
  • Japan

Listings


Biography

Sharp Corporation manufactures and sales telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, China, and internationally. It operates through thre...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 08:21
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.